Purpose Micro-credentials offer flexible pathways for upskilling, yet their adoption in emerging contexts faces substantial regulatory and institutional barriers. This exploratory convergent mixed-methods study examines micro-credential adoption in Palestine and Jordan through the lenses of signaling theory and skills ecosystems. This paper addresses three questions concerning stakeholder awareness, systemic barriers and the selective adaptation of international reference frameworks. Data were collected in 2023 through document analysis, surveys of institutional (n = 25) and employer (n = 35) respondents, stakeholder interviews (n = 12) and four institutional case studies. The findings indicate a pronounced signaling problem: Only 31.4% of employers reported familiarity with micro-credentials and only 17.1% reported using them in hiring or screening. At the same time, a skills-ecosystem coordination problem is evident, as regulatory ambiguity was rated as severe barrier by 83.3% of Palestinian and 84.6% of Jordanian institutional respondents. Although Jordan's layered governance structure offers more procedural flexibility than Palestine's centralized system, both settings lack clear recognition pathways and interoperable standards. The study contributes a comparative analysis of employer recognition, institutional readiness and policy alignment in two selected Arab higher education systems within the broader MENA region. It proposes a contextualized six-component framework and an advisory implementation roadmap, using the European approach as a reference point for selective adaptation rather than direct policy transfer. Future research should assess pilot outcomes, learner experiences and policy resilience under conditions of regional instability. Design/methodology/approach Using an exploratory convergent mixed-methods design, this study examined micro-credential adoption in Palestine and Jordan through document analysis, two structured surveys, 12 semi-structured interviews and four institutional case studies. Survey data from institutional respondents (n = 25) and employer respondents (n = 35) were analyzed descriptively to map awareness, barriers and readiness. Qualitative data were coded thematically and integrated with documentary evidence through triangulation. The design enabled a comparative assessment of employer recognition, institutional capacity and regulatory alignment across two higher education contexts, while treating the European micro-credential approach as a reference point for selective adaptation rather than direct policy transfer. Findings The findings reveal that micro-credential adoption in Palestine and Jordan is constrained by both a signaling deficit and a coordination gap within the skills ecosystem. Employer awareness remains limited, and trust in micro-credentials is weakened by the absence of nationally recognized quality assurance and verification mechanisms. Institutional respondents in both countries identified regulatory ambiguity as the most severe barrier, while technological limitations and a cultural preference for conventional degrees further hinder adoption. Jordan appears somewhat better positioned for experimentation due to greater institutional flexibility, but both contexts lack clear recognition pathways, interoperable standards and stable governance conditions for wider implementation. Research limitations/implications This study is exploratory and based on purposive samples of institutional and employer respondents in two higher education contexts; therefore, the findings should not be interpreted as statistically representative of all providers or labor-market actors in Palestine and Jordan. The analysis focuses on individual respondents rather than institutions as aggregate units and does not test causal relationships. In addition, the fieldwork was conducted in 2023, and subsequent regional instability may affect the durability of some implementation assumptions. Future research should examine pilot initiatives, learner outcomes, employer uptake and policy resilience through larger and, where feasible, longitudinal designs. Practical implications The findings suggest that policymakers and higher education leaders should avoid introducing micro-credentials as isolated short courses without parallel action on recognition, quality assurance and verification. In both contexts, practical progress depends on creating proportionate approval pathways, strengthening digital credential infrastructure and involving employers in the co-design and validation of learning outcomes. For institutions, the results highlight the need to build staff capacity in modular curriculum design and assessment. For employers, clearer national standards and interoperable verification systems are essential if micro-credentials are to function as credible signals in recruitment and workforce development. Social implications The study suggests that well-designed micro-credentials could widen access to flexible learning for adult learners, graduates and workers who cannot easily participate in full degree programs. In contexts marked by youth unemployment, skills mismatches and unequal access to continuing education, they may support more inclusive pathways to employability and lifelong learning. However, without trusted recognition systems, quality assurance and equitable digital access, micro-credentials may reinforce existing inequalities rather than reduce them. Their social value therefore depends on credible regulation, employer recognition and inclusive institutional implementation. Originality/value This study adds value by integrating employer recognition, institutional readiness and policy alignment within a single comparative analysis of micro-credential adoption in Palestine and Jordan. Rather than treating micro-credentials only as a technical or curricular innovation, it examines them through the combined lenses of signaling theory and skills ecosystems. The paper also contributes a context-sensitive six-component framework and an advisory implementation roadmap derived from empirical findings and the literature, while distinguishing selective adaptation from direct policy transfer. In doing so, it extends the current debate on micro-credentials in emerging higher education contexts and two selected MENA systems.
Khayat et al. (Wed,) studied this question.